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Pennsylvania has consistently received low ranks on measures of school

funding equity. As of 2008, prior to the implementation of a new funding formula,

Pennsylvania ranked 8th among all states in terms of school finance inequity, based on

the average percentage difference in per-pupil spending among school districts (Federal

Education Budget Project). While other states have altered their school funding

formulas as the result of court-ordered mandates, Pennsylvania’s legislature confronted

the issue directly, commissioning a costing-out study to establish the actual resources

necessary to ensure that the students of Pennsylvania receive an adequate education.55

In response to the recommendations of this study, the governor proposed a budget that

included additional funds to be directed to certain districts. The budget, along with a

new school funding formula, was enacted by the legislature in the summer of 2008.

Pennsylvania’s new formula sets an adequacy target determined by the number of students in each school district and their educational needs. Specifically, a base cost

of $8,003 is allotted for each student, and then additional funding is provided based on

the number of low-income students and English language-learners, the district’s size,

and regional cost differences (Augenblick, Palaich & Associates, 2007). Districts that

are unable to raise sufficient funds to meet the adequacy target are provided with state

funds to cover the gap. Of the 501 districts in the state of Pennsylvania, 471 districts

55 This work was instigated by a group of business leaders in the Lehigh Valley (Education 2010) who had commissioned Augenblick, Palaich & Associates to study the Allentown School District. The consultant’s analysis revealed a $2000 per pupil revenue gap which, in part, was the result of the state’s funding formula to districts (“Pennsylvania’s Costing-Out Study,” n.d.).

had spending below the estimate of what it would take to have their children reach an

adequate level.

For the purposes of the costing-out study, an adequate education is defined as

100% of students achieving proficiency on state reading and mathematics assessments

and mastering state standards in 12 academic areas by the year 2014 (Augenblick,

Palaich & Associates, 2007). Per pupil allotments include the cost of educating an

average student in the Commonwealth to meet state performance expectations plus

“weights” for certain categories of students (including students in poverty, special education students, gifted students, and English language learners) to allow them to

also meet state performance expectations.

The authors of the costing-out study used three methods to determine the

appropriate per pupil allotments: a successful school district approach, which examines

the spending of high performing school districts as measured against state performance

expectations; a professional judgment approach, which relies on the expertise and

experience of educators to specify the resources, staff, and programs that schools need

to meet performance expectations; and an evidence based approach, which uses

education research to help provide answers about how resources should be deployed in

schools so that students can meet performance expectations (Augenblick, Palaich and

Associates, 2007). Findings of these analyses led Augenblick, Palaich and Associates to

develop a new state funding formula designed to enable all districts to reach their

proficiency goals. Table 1 describes the weights tied to student needs used to determine

Table 1. Value of Formula for Factor Related to Student-Based Need

Student-Based Need Value or Formula for Factor

Special Education 1.30 x all students enrolled in special education programs

Poverty 0.43 x number of students eligible for

free/ reduced-price lunch English-Language

Learners

((-.023) x (LN of 2005-06 enrollment) +3.753) x number of ELL students, with a minimum of 1.48 and a maximum of 2.43 [ASD: 1.4978 x number of ELL students]

Gifted ((-0.13) x (LN of 2005-06 enrollment) +

1.482) x number of gifted students, with a minimum of .20 and a maximum of .66

[ASD: 0.2052 x number of gifted students]

Note. Adapted from Costing-Out the Resources Needed to Meet Pennsylvania’s Public Education Goals

(p. 30), by Augenblick, Palaich and Associates, Inc., 2007.

The school funding formula adopted by the state is designed to ensure that

education funds are distributed among districts to ensure vertical equity. Such an

approach is intended to provide for an adequate education for all students. This formula

provides a basis for defining equity in Pennsylvania.

Governance and Resource Allocation in Allentown School District

The Allentown School District operates with a $233 million budget and

employs more than 2,300 educators and support staff (school year 2010-2011), making

it the sixth largest employer in the Lehigh Valley. The Allentown School Board sets

policies for the district, guided by the Pennsylvania School Code. It is also engaged in

long-range planning and formal and informal evaluation of district initiatives. Required

duties of the Board include levying taxes, electing the superintendent and all district

employees, approving matters relating to investments and expenditures, and adopting

the annual budget. Nine school directors are elected by district residents to serve on the

state officials designated by law to administer the school system. The superintendent

and the administrative team support the board in all educational and financial actions

(ASD Board Brochure), and the superintendent serves as a non-voting member of the

board.

Budgets for the Allentown School District are prepared by the Chief Financial

Officer in cooperation with district administrators. All budgets are informed by

contracts with the various public employee unions operating in the district as well as

state and federal requirements. Procedures for allocating funds among schools and

programs have evolved over the years but appear to be comparable to the vast majority

of school districts in the United States. Budgeting is centralized and comprehensive

school-level budgets are not produced. To satisfy ESEA requirements for Title I

allotments, the district provides teacher average costs at the school level rather than

including actual costs. Specific methods for resource allocation are reported in greater

detail in Chapter V. In school year 2010-2011, the administration in Allentown hired

the education consulting firm of Cross & Joftus56 to conduct a resource assessment,

providing district personal with detailed information of how and where money was

being spent in the 2009-2010 school year.

Data Collection

All data collection has been approved by the Allentown School District and the

University of Pennsylvania Institutional Review Board. Data collection took place

during the 2010-2011 school year and consists of document analysis and interviews; the

analysis is based on 2009-2010 data.

The information used to complete this study includes data on students, teachers,

and schools. Student data includes student characteristics (i.e., ELL status, poverty,

race, special education status), student achievement data (i.e., Pennsylvania System of

School Assessment scores, AYP performance levels), and student behavior data (i.e.,

attendance, disciplinary actions). This data is collected at the district and state level and

reported by the state.

Teacher data includes teacher attributes57 (i.e., years of experience, credentials),

teacher compensation, and metrics of professional practice (i.e., evaluation reports,

value-added scores, teacher self-efficacy measures, teacher collective-efficacy

measures). Information on teachers’ attributes presents the greatest difficulty in terms

of data collection. The human resources department has data on teachers’ years of

experience, credentials (e.g., B.S., M.S.), professional development courses taken,

teachers’ certification status, and teachers’ college attended and grade point average in personnel files in the Administration Building. The department does not keep PRAXIS

test scores, which could serve as a proxy for content and pedagogical knowledge.

Unfortunately, teacher data has not yet been transferred to a centralized personnel

database, so only information on experience and credentials is available for my study.

Data collected on teacher compensation include salary, benefits, and funding source.

57 I was unable to attain reliable teacher data on general academic ability, training, or certification status – beyond the fact that all teachers in elementary schools and middles schools are “highly qualified” as required by No Child Left Behind federal legislation.

Amassing metrics of professional practice required some additional collection

of data. The district’s only available measure of individual teacher practice is an evaluation report that indicates whether teachers are “satisfactory” or “unsatisfactory.” Over 98% of teachers were categorized as “satisfactory” in the 2009-2010 school year.

As this finding does not provide much discrimination for an equity analysis, I have not

used it in my study. Two district initiatives were implemented in the 2011 to support

the collection of measures of teacher practice: first, the district contracted with SAS

EVAAS to provide teacher level value added scores; and second, I administered a

survey to all the teachers in the district to question their sense of self-efficacy and the

collective efficacy of the building in which they work.

As a result of additional data collection, I have four measures of human capital

resources that have not been included in the literature on intradistrict equity. The first

metric of professional practice which I use in my analysis is ratings of teachers

according to their value-added scores. This metric is used to differentiate among

schools on the basis of the portion of highly effective teachers in each school and the

portion of highly ineffective teachers in each school. The second metric used in my

analysis is a calculation of teacher efficacy determined using data from a survey

administered to all elementary and middle school teachers. Two additional measures

are similar in that they rely of value-added measures and efficacy measures, but they

differ in that they offer a view of what the entire school offers to students. The Growth

tested grade levels in schools. Teacher collective efficacy measure provides teachers

perspectives regarding their schools’ faculty, as a whole, to impact student outcomes. Value added measurements of low and high teacher effect. Teachers have long

been acknowledged for their students' accomplishments. Many have pointed out that

this is unfair, as teachers are only responsible for a portion of student achievement

outcomes. Value-added models were developed to address this problem. In theory, they

partition out student growth that is the result of the classroom environment, or teacher

practice, and the growth that is due to what the student brings to the classroom: her

prior knowledge, the support of her family, previous teachers, etc. After these factors

have been separated these models can, essentially, rate teachers based on their

contribution to student achievement outcomes.

Value-added models rely on student assessment results and links between

teachers and students. Data systems have been enhanced in recent years, making the

application of value-added models possible though approach only offers information on

teachers that are teaching tested grades and subjects (such as Mathematics and English

Language Arts). To date, the information generated through the PA Value-added

assessment system has been primarily used as a tool to aid teachers in their instruction.

For example, value-added results can identify the type of students (high achieving or

low achieving) with which the individual teachers are achieving the best results. This

information can be used to target appropriate supports to teachers.

The more data that is included in value-added models, the more accurate their

As previously discussed, there are additional technical concerns that must be

acknowledged when using value-added models to measure teacher effectiveness: one

such concern is that value-added models generally assume that students are randomly

assigned to classrooms, which is often not the case. Also, a teachers' influence may go

beyond his classroom, thereby skewing the results for other teachers. Additionally, not

all value-added models are the same - and some provide better information than others.

More practical concerns include the fact that value-added models are complex and

difficult to explain.

While the state does not provide teacher level value added scores to school

districts, it is possible to obtain this information if the district is willing to provide

teacher level data and student level data, and links between them, to an organization

with the capacity to conduct the analysis. ASD has contracted with SAS EVAAS to

provide teacher-level value-added scores for all elementary school teachers in grades

four through five and middle school teachers teaching mathematics and English

Language Arts in grades six through eight. Students in these grades must take the

Pennsylvania System of School Assessment (PSSA), providing the data required to

conduct value-added analysis.58 Using a longitudinal, mixed model approach, SAS

EVAAS offers a complex statistical model which provides less vulnerable outcomes

than simple value-added models (McCaffrey, Han & Lockwood, 2008). Furthermore,

SAS EVAAS methodology has been approved as a viable growth model for states and

58 SAS EVAAS currently has a contract with the State to provide school- and district-level value added data.

districts to include in their Teacher Incentive Fund and Race to the Top applications59

(U.S. Department of Education website).

With data on student PSSA scores, and links to teachers provided by the district,

SAS EVAAS was able to construct a teacher level value-added measure. This measure

compares teachers within the district and divides these teachers into quintiles according

to their effectiveness. Definitions for these quintiles are provided below:

 Level 1, Least Effective: Teachers whose students are making substantially less progress than state growth standard (the teacher’s index is less than -2).

 Level 2, Approaching Average Effectiveness: Teachers whose students are making less progress than the state growth standard (the teacher’s index is less than -1 but equal or greater than -2).

 Level 3, Average Effectiveness: Teachers whose students are making the same amount of progress as the state growth standard (the teacher's index is less than

1 but equal to or greater than -1).

 Level 4, Above Average Effectiveness: Teachers whose students are making more progress than the state growth standard (the teacher's index is less than 2

but equal to or greater than 1);

 Level 5, Most Effective: Teachers whose students are making substantially more progress than the state growth standard (the teacher's index is 2 or

greater).

59 The first two growth model pilots awarded by the U.S. Department of Education were awarded to Tennessee and North Carolina, each engaging SAS EVAAS to provide value-added analysis.

For my equity analysis, I look at how teachers are dispersed among schools

according to their effectiveness as defined above. More specifically, I consider schools

in two ways: 1) by percentage of teachers60 in bottom two quintiles of effectiveness

(least effective and approaching average effectiveness); and 2) by percentage of

teachers61 in top two quintiles of effectiveness (above average effectiveness and most

effective).

Three-hundred-forty-one (341) value-added measures were provided for elementary

and middle schools. There are 819 teachers in elementary and middle school. This

represents only 31% of all teachers. This is due to a number of reasons: 1) in

elementary schools, the majority of scored teachers get rankings for both reading and

mathematics; 2) in elementary schools, only teachers in grades four and five are

included in the calculus; and 3) value-added scores were only provided for teachers

with two years of data available. Table 2 provides school level data.

60 This is calculated only for teachers with value-added scores. 61 This is calculated only for teachers with value-added scores.

Table 2. Number and Percentage of Teacher-Level Value Added Scores by School School Number of Teachers included in Analysis Total Number of Teachers in the Building % of all Teachers included in Analysis McKinley ES 4 18.4 22% Lehigh Parkway ES 1 18.1 6% Cleveland ES 5 18.5 27% Jackson ES 5 18.4 27% Ritter ES 8 32.4 25% Washington ES 9 39.2 23% Muhlenberg ES 7 34.8 20% Sheridan ES 7 42.2 17% Jefferson ES 7 50.1 14% Roosevelt ES 4 36.5 11% Mosser ES 4 46.2 9% Hiram Dodd ES 7 46.2 15% Union Terrace ES 9 43.2 21% Central ES 10 50.3 20% Harrison-Morton MS 42 56.0 75% Raub MS 42 67.1 63% Trexler MS 47 68.3 69% South Mountain MS 36 84.6 43%

Given the small sample size of teachers with value-added scores, especially in

elementary schools, this data should be considered with great caution. Also, while this

metric may be more useful in middle schools where a greater number of teachers are

included in the analysis, there is still an issue stemming from the variation among

schools in the percent of all teachers included in the analysis. As demonstrated in the table above, Harrison-Morton Middle School has scores for 75% of its teachers while

South Mountain Middle School has scores for only 43% of its teachers.

Growth Index. Just as teacher effectiveness is determined through an analysis

of what “value” teachers add, the Growth Index similarly provides a measure of what “value” an entire school adds. According to an informational document provided by

one of the state’s Intermediate Units (IU5), “the index is a value based on the average growth across grade levels and its relationship to the standard error so that comparison

among schools is meaningful” (IU5, 2011, p.4) A growth index of fifty indicates that, on average, students in the school achieved a year’s worth of academic growth in a year.62 A growth index greater than fifty indicates that, on average, students in the

school achieved more than a year’s worth of academic growth in a year and a growth

index less than fifty indicates that, on average, students in the school achieved less than

a year’s worth of academic growth in a year (IU5, 2011). In my equity analysis, I consider how the State’s calculated growth index for each school varies by school. Teacher efficacy. An additional input that has not been included in research on

intradistrict equity is that of teacher efficacy. As noted earlier, both teacher self-

efficacy and teacher collective efficacy have shown to be related to student outcomes.

As such, it is worthwhile to include these metrics as measures of teacher quality,

resources which are potentially differentially distributed across schools. In order to

evaluate teacher efficacy, I administered a survey to all teachers in ASD. (The email

sent to principals requesting that they have the teachers in their building respond to an

email survey is included in Appendix D.) The survey presented to teachers included 25

responses: the first response required was to indicate in which building the respondents’

primary teaching responsibilities lay. The following twelve items measured teacher

self-efficacy, and the final twelve questions measured teacher collective efficacy.

Survey response was high. Assuming that all teachers, and only teachers, received the

62 The Growth Index provided by the State uses zero to indicate a year’s worth of growth in a year. I have transformed their numbers in order to accurately apply my equity statistics.

request to complete the survey, 79% (429) elementary school teachers responded and

91% (251) middle school teachers responded.63

My dissertation uses the Teacher Beliefs Scale – short form (TBS), originally

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